Tag Archives: air cargo services

Southern Air’s Chapter 11 reorganization plan approved by the bankruptcy court

Southern Air Holdings, Inc. (Southern Air 2nd) (Cincinnati) has announced that it has received confirmation of its “pre-arranged” Plan of Reorganization (Plan) from the U.S. Bankruptcy Court in Wilmington, Delaware, which has been overseeing the Company’s Chapter 11 proceedings following its voluntary filing on September 28, 2012. The Plan received substantial support from key secured creditors as well as unsecured creditors.  The confirmation clears the way for Southern Air to emerge from its court-supervised financial restructuring as expected, within the next few weeks.

Daniel J. McHugh, Southern Air CEO, said, “We are very pleased to receive court approval of our Plan of Reorganization and hope to exit Chapter 11 in just a matter of weeks.  This was a critical part of our overall transformation. We have used this process to dramatically change and improve our capital structure, substantially reduce our debt and other legacy costs, strengthen our balance sheet, and enhance our competitiveness with new financial flexibility.

“We will emerge as a well capitalized carrier delivering safe, high quality air cargo services. As part of our strategic transformation, we have realigned our operations and capabilities and transitioned to a modern, fuel-efficient fleet of 777s and 747-400s serving global customers. Our operations and corporate activities are now in Northern Kentucky (the Cincinnati airport) near our largest hub of activity where we are even better able to satisfy the needs of our customers and grow our business for the long term to benefit our business partners and employees for years to come.

“It is thanks to the hard work and dedication of the Southern Air team and the support of our lenders and business partners that we have been able to move through this process successfully, fulfilling customer requirements as scheduled and providing high quality air cargo services without interruption. As a result of our transformation, Southern Air is better positioned for the future both financially and operationally to grow profitably as an air cargo industry leader,” concluded McHugh.

Copyright Photo: Michael B. Ing. Southern Air is now concentrating its future around the more fuel efficient Boeing 747-400 and the 777 and its growing relationship with DHL. Boeing 747-4F6 (F) N469AC (msn 27602) is pictured on final approach to Los Angeles International Airport.

Southern Air: AG Slide Show

Southern Air files for Chapter 11 bankruptcy protection and reorganization

Southern Air, Inc. (2nd) and the holding company, Southern Air Holdings, Inc., today (September 28) filed for Chapter 11 bankruptcy protection and reorganization.

The company issued the following statement:

To position the company for future growth and success, Southern Air has been taking steps in response to the economic challenges and extreme industry changes that have impacted the international freight market, including major cutbacks in spending by the U.S. Department of Defense. At the same time, we have been making good progress in transitioning to a modern, fuel-efficient fleet of 777s and 747-400s serving global customers. The next component of our transformation is the restructuring of our corporate debt and other costs associated with our acquisition in 2007. With an improved balance sheet, Southern Air will have a greater capacity to move forward as a global air cargo industry leader on a financially stronger and more competitive foundation for the long term.

In order to implement this financial restructuring, Southern Air Holdings, Inc., including Southern Air Inc., filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on September 28, 2012 with the support of a majority of our key financial stakeholders. We will work with them to finalize, obtain court approval for, and implement a plan of reorganization as quickly as possible.

We have also filed a proposed plan of reorganization that has the support of a majority of our key financial stakeholders and provides for the continuation of our business in the normal course. We are working to complete the debt restructuring as quickly and efficiently as possible.

Southern Air remains open for business as usual, and fully expects to continue normal business operations, fulfilling all customer requirements as scheduled and providing uninterrupted high quality air cargo services.

Copyright Photo: Tony Storck. Boeing 747-2F6B (F) N765SA (msn 21833) lands at Baltimore/Washington.

Southern Air: